Preparing for divorce can be stressful. Gathering financial records early can help you understand your finances and feel more prepared.
In North Carolina, spouses must live in separate homes for a full year plus one additional day, with at least one spouse intending the separation to be permanent, before filing for absolute divorce. At least one spouse must also have lived in North Carolina for six months before filing.
What income and account records should you gather?
You may need to collect documents that reflect your income, assets and debts, including:
- Tax returns from the past two years, plus any additional years required for disclosure
- Pay stubs and business or self-employment income records, if applicable
- Bank statements showing account balances and activity
- Investment and retirement account statements
- Life insurance policies with cash value, if applicable
- Records of household bills and regular expenses
The records you need will depend on your situation.
How can you track property and debts?
Create separate folders for income, accounts, property and debts. Mortgage and credit card statements go in the debt folder. Property deeds and vehicle titles help document ownership.
North Carolina uses equitable distribution to divide marital property and debts. North Carolina law presumes that an equal division of marital property and divisible property is equitable, unless the court finds that an equal split would be inequitable. Both spouses may need to disclose their assets and debts. The North Carolina Judicial Branch’s separation and divorce guidance explains the process.
If you want the court to divide marital property, you must raise an equitable distribution claim before the divorce becomes final. Otherwise, you may lose the right to seek court-ordered property division.
For families in Hillsborough and Orange County, organized records can help prepare for property division discussions with legal counsel.
What mistakes should you avoid when preparing records
Missing statements can leave gaps in your financial history. Use actual records instead of estimated balances. You may also need to document less obvious accounts, such as health savings accounts or stock options.
Keep originals and update copies as new statements arrive. Hiding or changing financial information can harm your credibility and complicate the case.
Moving forward with financial preparation
Organized records give you a stronger foundation as the process moves forward and make it easier to have informed conversations before major decisions are required.
Families going through divorce do not have to figure this out alone. A family law attorney can help you understand what records apply to your situation, what North Carolina law requires and what options may be available.
